What should be the main objectives of the business plan?
Most financial institutions and service providers require you to present a detailed business plan to get financing for your business. Since your business will be less likely to be terminated, you may not need to finance so you will not feel the need to write a business plan. However, you may need to write down a business plan to secure your credit card surcharge or to open a business account. This is different in every bank.
If you are growing your business, use it to help expand investment, develop growth strategies, find opportunities and mitigate risks. Palo Alto Software found that business ventures make companies twice as likely to receive external funds.
If you’re just starting your business, use it to identify the strengths and weaknesses of your business, tell others your vision, and build the right forecast.
These Are the Steps to Writing a Business Plan:
- Establish goals
- Understand your audience
Here are two important questions to ask:
What are you hoping to accomplish with your business?
What are you hoping to accomplish with your business plan?
Reaching your business plan through this lens will help you focus on the end goal throughout the writing process. They also provide a measure to measure against success.
Before writing your business plan, gather the materials and data you need to inform what happens. It covers your market and industry research – covering everything you need to consider, from customer research to legality. It’s easy to get started with the information you already have, rather than individually researching each piece.
Turn to guides, templates, and small business plan templates to help. Many countries have a government administration or service dedicated to providing entrepreneurs and store owners with information, resources and tools to help them plan, launch, manage and grow their business.
Understand Your Audience:
Because business plans serve different purposes, you do not always present them to the same audience. It is important to understand who will teach your business plan, what you are trying to explain to them, and what hesitation they may face.
That way, you can tailor your business plan accordingly. Likewise, your audience also determines what type of business plan you use. Which brings us to our next point.